Cursor MCP Proxy Setup Guide: Add Budget Controls and Audit Trails to Your Tools

Cursor makes MCP tools easy to connect. It does not give you budget enforcement, spend attribution, or strong policy control out of the box. Here's how to add a proxy layer that does. Why proxy Cursor MCP traffic at all? Cursor's MCP support is great for one thing: getting tools into the editor fast. You point Cursor at a server, the model sees new capabilities, and suddenly it can search codebases, call internal APIs, or trigger automations. That convenience becomes a governance problem the minute those tools have real cost or real blast radius. A plain MCP connection usually tells you who connected. It does not reliably enforce how much the agent can spend, which tools it can use under what limits, or how to attribute usage back to a team, environment, or workflow. If Cursor gets stuck in a loop, retries aggressively, or delegates work across multiple tools, you find out after the damage is done. That's why a Cursor MCP proxy matters. It gives you a policy point between the client an